DLMSO April 26, 2004 

MEMORANDUM FOR RECORD 

SUBJECT: Business Initiative Council (BIC) Supply Discrepancy Report (SDR) 

 Integrated Product Team (IPT) Meeting, April 13-14, 2004. 

 Purpose: The Defense Logistics Management Standards Office (DLMSO) chaired a 

meeting on April 13-14, 2004 at the Fort Belvoir HQC. The purpose of the meeting was to 

develop an implementation plan for the BIC SDR Transformation Initiative. A list of 

attendees is shown at Enclosure 1. All briefings and handouts provided during the meeting 

are available as attachments to the meeting agenda posed on the SDR Committee web page 

at: http://www.dla.mil/j-6/dlmso/Programs/Committees/Supply/supplySDR.asp. 

Background: The BIC SDR Transformation Initiative objective is to move SDRs into 

an integrated transactional environment. The SDR initiative employs a Defense Automatic 

Addressing System (DAAS) any-to-any translation function that will support both 

commercial standards and Component unique formats and will permit legacy Components 

systems and Enterprise Resource Planning systems to communicate with each other and the 

customer electronically. Under Phase I, the initiative provides a facilitated web-based 

method to capture SDRs. The DOD WebSDR application will fill a void for users without 

Service-sponsored programs and provide a basis for viewing SDR information online. The 

application will pre-fill information for the customer from requisition/shipment history data 

resident at DAAS and determine the appropriate action office based upon established 

business rules. Requested data content is keyed to the type of discrepancy. The phased 

implementation is rescheduled to begin in the May 2004 timeframe with submission of 

SDRs. Email distribution will be replaced with electronic interfaces, as the Components are 

capable of receiving the transaction. Phase I will provide limited transactional exchange 

which will be improved and expanded during Phase II. In addition, Phase II will incorporate 

SDR responses and management reports. The overall project integration will focus on 

supporting electronic communication of SDR information (without duplicity of point-topoint interfaces) and building the source information to support the assimilation of perfect 

order fulfillment metrics and DOD management reports. 

Review of Agenda Topics: 

a. Status Update on Phase I of the SDR Initiative: Ms. Ellen Hilert, DOD 

SDR System Administrator, provided the IPT with a status update on Phase I of the SDR 

initiative, which is scheduled to begin a phased implementation starting with a limited 

number of Air Force customers and possibly the Defense Reutilization Management Office 

pending the completion of the information assurance assessment currently being conducted 
by the Defense Automatic Addressing Systems Center (DAASC). Testing with the Defense 

Logistics Agency (DLA) has been underway and GSA testing will begin as soon as some 

networking issues have been resolved. Mr. Sean Humenansky, representing DAASC, 

provided a demonstration of the WebSDR and highlighted new functionality that has been 

implemented since the last demonstration in November 2003. 

 b. Status Update on the BIC Transformation Initiative: Ms. Hilert 

indicated that the BIC Transformation Initiative has been approved by the BIC principals, 

who are the Secretaries of the Services, and signed by Mr. Wynne, the Acting Under 

Secretary of Defense for Acquisition, Technology and Logistics on December 16, 2003. The 

charter establishing the IPT was signed by the DoD Transformation Initiative champion, 

Colonel Pipp, Deputy, Supply Chain Integration, ODUSD(L&MR)(SCI). Funding for the 

initiative was due to be provided to DLMSO/DAASC by April 19, 2004, and has been 

received from the Army. Air Force is in the process of transferring funds; no status is 

available on Navy funding. There was a review of the high level POA&M provided to the 

BIC as well as the detailed POA&M developed for the IPT. Ms. Hilert emphasized that the 

Components need to identify any problems with meeting the implementation date of May 

2005. Although interim dates can be adjusted, a delay in the final implementation date must 

be reported to the BIC outlining reasons for the slippage. Action Item: Components 

provide by April 30, 2004 concurrence with the May 2005 implementation date or nonconcurrence with an explanation that can be provided to the BIC. 

 c. Review of Draft ADC (Staffed as PDC 123) SDR Transaction Exchange: 

This draft ADC which has previously been sent to Components for review and comments 

will provide new reply and status codes that will be incorporated into the joint SDR 

instruction. Action Item: Components provide comments/concurrence by April 30, 2004 to 

include any new codes required and definitions of those codes. 

d. Phase II Concept: Phase II of the SDR Initiative was discussed, to include 

DLMS migration impact on SDRs and Component concept to align existing or planned SDR 

applications to the BIC SDR initiative and interface issues. Ms. Hilert conducted a review 

of the Draft Requirements Document which outlines Phase II functionality. Many of the 

functional requirements require further definition and Ms. Hilert indicated that one of the 

roles of the IPT is to further define these requirements as well as identify any additional 

Component unique requirements or interfaces. Also discussed was the Air Force Security 

Assistance Command (AFSAC) SDR initiative. AFSAC has been working directly with 

DAASC to develop requirements for Foreign Military Sales (FMS) customers. FMS 

customers will continue to enter SDRs via the ILCO portal, however, SDRs will be 

forwarded to DAASC for routing/translation and will be part of the DAASC history. It is 

anticipated that both the Navy and Army FMS customers will also utilize this capability once 

it has been implemented by AFSAC. The DAASC help desk requirements for the WebSDR 

were discussed and it was determined that a five-day week with normal business hours would 

be sufficient. DLA will begin testing Phase II 842 transaction exchange with DAASC in late 

April in preparation for a June implementation. Action Items: Components are requested to 

complete the following actions by April 30, 2004: 
 (1) Review the Draft Requirements Document 

 (2) “Fill in the blanks” and submit additional requirements for 

integration in the document. 

 (3) Provide requirements for reports and inquiries. 

 (4) Evaluate need for enhanced email SDR (more flexible format that 

can be either manually viewed or machine processed). 

 (5) Provide current SDR transaction format for DAAS translation 

 (6) Document any issues that could negatively impact the 

implementation date. 

 (7) If required, submit official Component policy document on use of 

DOD WebSDR. 

 (8) Assess capability to provide information copy to DAASC of SDRs 

entered directly to Component application (bypassing DAAS). This will be required under 

Phase II. 

 (9) Determine the length of time required for DAASC to maintain SDR 

history for domestic SDRs. 

 (10) Document requirement for handling SDRs input by someone other 

than the customer (Who gets email confirmation? How is second party identified?). 

 

 e. Phase III Concept: Ms. Hilert indicated DLMSO is currently documenting 

requirements to provide a DLMS transaction to replace the hard copy DD Form 1225, 

Storage Quality Control Report. The effort will include replacement of the DLA-unique 

transactions used to communicate 1225 information between the Distribution Depot and the 

DLA Inventory Control Point. A DLMS change proposal will be coordinated with both the 

SDR and Supply Process Review Committees. This Phase is not associated with the BIC. 

Action Item: Components should assess current functionality related to the DD Form 1225 

and alert modernization offices of future transaction exchange requirement. 

 f. Other Discussion Items: Ms. Hilert indicated the IPT should be aware that 

Mr. Alan Estevez, Assistant Deputy Under Secretary of Defense, Supply Chair Integration, 

has indicated that he would like to see the completion and submission of SDRs become a part 

of the receiving process. The result would be a reliance on standard logistics transaction 

exchange architecture with minimal supplementation by independent web-based SDR 

submission. Ms. Janet Myers, Defense Supply Center Columbus, indicated that there is no 

complaint module in SAP; this functionality must be customized. 

 g. Wrap-up. The next IPT meeting is tentatively scheduled for June 10-11, 2004. 

 

 APPROVE: 

ELLEN HILERT _____/signed/_____ JAMES A. JOHNSON _____/signed/_____ 

DOD SDR System Administrator Director 

Supply PRC Chair Defense Logistics Management 

 Standards Office